HARI SINGH Vs. ITO

JUDGEMENT

(1.) THIS petition is directed against order Annexure P. 2, dated 17 -12 -1998, passed by the Income Tax Officer, Ward -2, Gurgaon, under section 281B of the Income Tax Act, 1961 (hereinafter referred to as 'the 1961 Act'), read with rules 20, 22 and 26 of the Second Schedule appended to the Act for provisionally attaching the petitioner's FDR account in Oriental Bank of Commerce, Gurgaon.

(2.) A perusal of the record shows that by an award dated 23 -3 -1993, the Land Acquisition Collector determined the amount of compensation payable to the petitioner in lieu of the acquisition of his land under the Land Acquisition Act, 1894 (hereinafter referred to as 'the 1894 Act'). Reference application filed by him under section 18 of the 1894 Act was disposed of by the Additional District Judge, Gurgaon by awarding compensation at the rate of Rs. 265 per sq. yd. The petitioner and the State Government challenged the award passed by the reference court by filing separate regular first appeal which are pending before this court. During the pendency of the appeals, this court directed the State Government to release 50 per cent of the enhanced compensation to the petitioner on his furnishing adequate security and remaining 50 per cent without such security. The petitioner deposited the amount released by the State Government in fixed deposit with the Oriental Bank of Commerce. The same has been provisionally attached by the respondent. The petitioner has questioned authority of the respondent to pass order under section 281B on the ground that as on 17 -12 -1998, proceedings for the assessment or reassessment of his income were not pending before any of the authorities constituted under the Act.

(3.) WE have heard learned counsel for the parties and perused the record. Section 281B of the Act which provides for provisional attachment reads as under :